Monday, June 1, 2020
S. Korean Government Pushing for 'Korean New Deal'
To Create Jobs, Prepare for Post-pandemic Economy
S. Korean Government Pushing for 'Korean New Deal'
  • By Jung Suk-yee
  • May 1, 2020, 18:38
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Deputy Prime Minister Hong Nam-ki (second from right) speaks during the first meeting of the Central Economic Response Headquarters on April 29.

Deputy Prime Minister Hong Nam-ki presided over the first meeting of the Central Economic Response Headquarters on April 29. 

The main topics of the meeting included plans to expand financial support for small businesses and improve business regulations.  The meeting also discussed how to successfully pursue a "Korean New Deal" to help create jobs and prepare for a post-pandemic economy. 

The Korean government launched the Central Economic Response Headquarters to more effectively deal with the impact of the COVID-19 pandemic. It replaced the Crisis Management Meeting.  The new headquarters meeting will be held weekly to 1) examine the current economic situation and potential risks, 2) review existing policies, including the implementation of them as scheduled, 3) work on new policies to weather the crisis, and 4) officially inform the public of how the policies are working.  The headquarters meeting will respond fast to risks, as well as work to prepare the economy for a post-COVID-19 world.

Following are the topics of discussion at the meeting:

1. Plans to expand financial support for small businesses and enterprises

- Around 10 trillion won to be added to the current 16.4 trillion won worth of support

- Government to provide loan guarantees to the six commercial banks for the new support

- Loans with 3-4 percent interest to be extended to new borrowers

2. Improve business regulations on 10 sectors

- Select 65 regulations to be improved to develop the 10 sectors of data and AI, future cars and mobility, medical technologies, healthcare, fintech, venture startups, industrial complexes, recycling, tourism and e-commerce

- Work on deregulation to promote remote healthcare, remote education, online businesses and others that can be run without contact

3. Korean New Deal

- How to pursue a Korean New Deal to help create jobs and prepare for a post-COVID-19 economy

- Focus on a transformation into a digital economy, and preparation for the 4th industrial revolution and a post-COVID-19 economy

- A large-scale IT project discussed for a possible plan

- Discussion to continue at the 2nd Meeting of the Central Economic Response Headquarters